3. Asset protection issues

However, in many cases, they are set up with an individual person as the trustee, which effectively neutralises a major component of the asset protection.

For example, if the trust is sued, say, by a tenant, the trustee would be at risk, as would any personal assets.

The appropriate trust amendment can fix this but if not correctly implemented it could trigger a full stamp duty event.

The bottom line…

Family trusts can be a valuable tool, especially for families who want to share the financial fruits of their success.

However, it’s vital that you access professional advice before considering whether Family Trusts will benefit your long-term wealth creation and protection goals.

Metropole Wealth Advisory can assist you to grow, protect and pass on your wealth and can advise on appropriate strategies to help your achieve your goals including assistance with issues such as those identified above.

Disclaimer:

The above information is general in nature and not intended to be taken as advice. Any information contained in this analysis has been prepared without taking into account your objectives, financial situation or needs and is considered general in nature. Before acting on any information contained herein we recommend that you consider whether it is appropriate for your circumstances. Please discuss with your licensee’s adviser before acting on any of the information. If this analysis contains reference to any financial products we recommend that you consider the Product Disclosure Statement (PDS) or other disclosure document associated with the product before making any decisions regarding any products.

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Ken is director of Metropole Wealth Advisory and gives strategic expert advice to property investors, professionals and business owners. He is in a unique position to blend his skills of accounting, wealth advisory, property investing, financial planning and small business. View his articles

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